Events since then
โ๏ธCo's reporting two Qtrly reports
โ๏ธAccelerating growth for few sectors
โ๏ธUnderstandable problems for few others
โ๏ธCrazy run-ups & valuations in the last 9 mo's, supported by biz growth in some cases, but mostly due to Monetary factors & Investor enthusiasm...
I usually buy for two scenarios
1โฃLeading Co's within strong secular trends, that also have strong Management Teams and solid Financials (Rev growth, Profitability or improving Margins/FCF prospects, no balance sheet risk...).
These are bought with the intention of holding for the long-term as long as the thesis is intact or getting better. Strongly intend to add along the way. Ex : $ROKU $PINS $TWLO $DOCU $W $NOW $WDAY $NVCR $MTCH in the above table.
2โฃMore mature and stable Co.'s but with some growth left (no Financial risk), mainly bought for their current under-valuation, with the intent to sell when the Market or those stocks recover. Ex : $BIP $BUD $VTR $BR $BA in above table.
Occasional unplanned sells like
- $W one lot in late May, as the stock 8X'ed in 2 months after bottoming in March.
- $UBER after 3X (but unfortunately, just before the Vaccine news started coming out) as I was more interested in under-valuation in March, than for long-term.
I'm guilty of usually squeezing bulk of my buys in high Volatility periods.
Few purchases made after this (not recommendations)
$CRM (Dec, $220)
$ZM (Dec, $380)
$DOCU (Nov, $201)
$ETSY (Nov, $120)
$TDOC (Nov, $197)
$MDB (Sep, $209)
$FSLY (Sep, $76)
Updating my favorite investing concept & illustration for high volatility periods.
When good Co.'s are heavily discounted and put for you on a platter, given that you have a Watchlist &
โ๏ธdone your research
โ๏ธdeveloped thesis/conviction
โ๏ธnot worried about further downside
Every one needs their own toolkit for high volatility periods and bear markets. This is what will
โ๏ธensure you won't let fear drastically change your long-term plans and strategy
โ๏ธget you thru to the other side
โ๏ธmaybe even take advantage of the low prices
Here are few concepts that have helped me in the past high volatility periods.
โ๏ธBen Graham's Mr Market: He's mostly pretty smart/stable but high VIX (fear/uncertainty) & extremely low VIX (complacency) are when you need to be little contrarian & take advantage of his behavior.
โ๏ธ"You make a lot of money (by investing in good Co's) during Bear Markets, You just don't realize it at the time" - Shelby Davis.
โ๏ธWhen the price of a Stock (in a good Company) falls a lot, it actually becomes less risky (Howard Marks)
โ๏ธHyperbolic discounting : Fear causing time horizons to shrink, and Market valuing good Co's with bright future prospects as if they're mature/declining businesses. h/t
@IntrinsicInv โ๏ธCash and Courage during a crash are invaluable (Buffett).
Anyway, this is just a random collection of thoughts about high volatility periods (like March), some results/updates, and some concepts that help during those periods.
/END. ๐